Market Insight

Will £39bn affordable homes programme translate into deliverable affordable housing?

August 26, 2026
£39bn Affordable Homes Programme
The confirmation of the first strategic partners for the Government’s £39 billion Social and Affordable Homes Programme is a welcome vote of confidence in the sector and a moment many housing providers have been waiting for.

Homes England has appointed 33 partners to deliver social and affordable homes outside London over the next decade. Their allocations cover around 73,600 homes and £9.6 billion of grant funding. The mix of housing associations, local authorities and a private registered provider reflects the breadth of organisations needed to meet the scale of national housing ambitions.

Long‑term funding certainty should give providers, developers and councils the space to plan properly, build stronger pipelines, invest in skills and take on more complex regeneration.

But this is also the point where ambition must turn into delivery. Funding helps, but it doesn’t solve everything, as Gary Jeffries, Head of Residential Property Services at Vail Williams, explains.

Anyone working in residential development knows the real test will be whether partners can find the right land, secure planning permission, manage infrastructure requirements and deliver viable schemes at pace.

A stronger foundation for long-term planning

One of the most valuable aspects of the Government’s programme is its ten‑year horizon, explains Gary:

“Previous stop‑start funding cycles have made it difficult for providers to think beyond the next bid round. A decade of certainty should allow more strategic decisions around land acquisition, procurement and organisational capacity.”

It also gives breathing room for larger regeneration projects that simply cannot be delivered within short funding windows.

Gary continues: “A steadier pipeline of affordable housing could benefit the wider industry too. Contractors, consultants and MMC suppliers may feel more confident investing in people and manufacturing capacity when future demand looks more predictable.

“But funding certainty only goes so far. If planning delays, infrastructure constraints and land assembly issues persist, the advantages of a ten‑year programme will be harder to realise.”

The search for deliverable land will intensify

What we can expect to see is that competition for developable land will likely increase.

“Strategic partners will need to focus not just on land availability, but on deliverability within programme timescales. Homes must start on site by March 2036 and complete by March 2039. Whilst this may seem like a long window, it may not be long enough for sites with unresolved constraints,” Gary adds.

This is where early residential property due diligence becomes critical. Abnormal ground conditions, access issues, biodiversity requirements, utilities capacity, flood risk and contamination can all undermine residential development viability.

“We regularly see schemes stall because these issues emerge too late in the process. This is where public sector landowners will have an important role. Councils, government departments and other bodies should review their estates for surplus or underused land, particularly on the back of the new National Planning Policy Framework too, including opportunities to combine ownerships or embed housing within wider regeneration,” advises Gary.

The right partnership model could also accelerate residential development progress and improve public value.

Partnerships will need to begin earlier

No strategic partner will deliver the level of affordable housing at this scale alone. Registered providers will need to work closely with local authorities, landowners, developers, Homes England and infrastructure providers. According to Gary, early conversations will be essential.

“Too often, affordable housing is considered only after a scheme’s parameters have been fixed. That leads to difficult negotiations over tenure, design and viability later on. Bringing providers in earlier helps ensure the proposed mix, specification and delivery model are workable from the outset. It also gives developers clarity on whether a Registered Provider is ready to acquire Section 106 homes which is a growing challenge in some areas.”

Gary Jeffries, Head of Residential Property at Vail Williams.
Headshot photo of Gary Jeffries

Longer‑term partnerships should help, but expectations around value, design standards, programme and risk will still need to be aligned.

Grant funding does not remove the viability challenge

Substantial grant funding is undoubtedly positive, especially given higher build and borrowing costs. But residential development viability remains a significant hurdle.

“Grant rates must reflect regional variations in land value, build costs, rental income and infrastructure requirements. Some areas with the greatest housing need are also the hardest places to make schemes stack up. We then run the risk that headline numbers favour simpler sites over more complex regeneration, even though the latter often deliver wider social and economic benefits.”

A genuinely place‑based view of value is needed, one that considers long‑term community outcomes, not just cost per home.

Early, transparent financial viability assessment work is essential. Land values, tenure assumptions, infrastructure costs, design requirements and grant expectations must be tested together, not in isolation.

Planning capacity remains critical

The programme arrives during a period of planning reform and ongoing pressure on local authorities. National policy may support delivery, but applications still need to be assessed locally and many planning departments remain stretched.

If the Government wants pace, investment in planning capacity is unavoidable.

David Ramsay, Head of Planning at Vail Williams, adds:

“Providers can help by engaging early with planning authorities and communities. Pre‑application discussions, Planning Performance Agreements and clear evidence of local need can support a smoother process. But speed must not come at the expense of quality. The programme is intended to deliver not just homes, but successful places. That means getting design, accessibility, transport, green infrastructure and long‑term stewardship right from the start.”

What should housing providers and landowners do now?

Strategic partners should now review their pipelines and identify where additional sites or delivery partners may be needed. Key questions could include:

  1. Are existing land pipelines genuinely deliverable?
  2. Which sites are vulnerable to planning, infrastructure or viability delays?
  3. Where could public sector land support additional development?
  4. Do current development agreements still fit the scale of the programme?
  5. Where could collaboration accelerate delivery?
  6. How can grant funding unlock more complex regeneration?

Landowners and developers should also revisit their portfolios for sites that could support affordable housing, including stalled schemes or surplus operational land.

From funding programme to housing delivery

Yes, confirming the strategic partners is a major milestone, but it is only the start. The programme offers a rare chance to move beyond short‑term residential development cycles and take a more coordinated approach to affordable housing delivery.

Realising that opportunity will depend on the quality of sites brought forward, the strength of partnerships and the ability of the planning and development system to resolve barriers quickly.

The main challenge over the next decade won’t be about allocating the £39 billion, it will be how we can turn that investment into well‑designed, sustainable and genuinely affordable homes in the places that need them most.